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Forums - Nintendo Discussion - Nintendo has Moneyz in the bank .... a lot

Jo21 said:
NJ5 said:
Kasz216 said:
Also wasn't 10 billion what Microsoft had sitting around and was considered a big deal? Or was that 50 billion?

I think it was closer to the latter. But Microsoft is a much bigger company than Nintendo, if you calculate something like Cash per Employee, I'm pretty sure Nintendo "wins".

 

most of the money ends up with top executes with that amount of money they would give janitors thousands a year.

as employee working on a company Sony > microsoft > nintendo.

 

Actually we're talking about cash reserves, not profits. The profits get distributed among shareholders, taxes, employees and Nintendo's warchest (i.e. cash reserves), and maybe other things I forgot.

 



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I think its a great strategy. It also makes it (almost) impossible for any company to consider purchasing them - for less than a zillion Yen anyway. If they keep this up, as a company they may *never* fail.

If Capcom or Sega has a bad year or two - Nintendo could jump in, bail them out - and own them outright.

...and they did buy Monolith (Day of Disaster) developer recently...

Just from "safe" investments with this cash (i.e. secure cash bonds) they could do a return of 2%-3% (i.e. no risk). Welcome to a fixed profit of $300m US/year - without lifting a finger.



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shams said:
I think its a great strategy. It also makes it (almost) impossible for any company to consider purchasing them - for less than a zillion Yen anyway. If they keep this up, as a company they may *never* fail.

If Capcom or Sega has a bad year or two - Nintendo could jump in, bail them out - and own them outright.

...and they did buy Monolith (Day of Disaster) developer recently...

Just from "safe" investments with this cash (i.e. secure cash bonds) they could do a return of 2%-3% (i.e. no risk). Welcome to a fixed profit of $300m US/year - without lifting a finger.

 

Err ?

I don't understand.

Cash on hands actually make a company more attractive...

 

Lets say a company had a capitalization of 100 billion $ but has 10 billion $ of cash.

It would actually only cost you 90 billion$ to buy because as soon as the purchase is done you have those 10 billion $...



PS3-Xbox360 gap : 1.5 millions and going up in PS3 favor !

PS3-Wii gap : 20 millions and going down !

outlawauron said:
And so why doesn't Nintendo buy more studios?

I don't see why they don't use the money to buy some studios they could start putting out as many games as Sony.

Exactly. And they desperately need to imitate Sony, RIGHT? Especially in terms of 1st party power...

 

 

They are only buying a studio if they are sure that it is fitting into their profile. If they would randomly buy any team that happens to be cheap, they would become something like EA, a faceless publisher corporation with no personality, and no quality standards,  because they would be a bunch of suits behind the actual developers.

 

 



Since when did 10 billion dollars become a lot. I mean it is a lot for a company of Nintendo's size, but with the market and economy the way they are, having something stored up is good.



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Nintendo is most likely always looking to buy good studios that won't cost them too much money so large studios make no sense, and if they start to suck, they'd just sale them off like Rare, so might as well create new ones and hire new talents who'd jump to work for Nintendo at any time of the day. Acquiring studios is not so simple as just buying them, there a lot of processes and talks that'd have to go on, and I'm sure most won't fit Nintendo's description since they are the big boys, not the studios.



Alterego-X said:
outlawauron said:
And so why doesn't Nintendo buy more studios?

I don't see why they don't use the money to buy some studios they could start putting out as many games as Sony.

Exactly. And they desperately need to imitate Sony, RIGHT? Especially in terms of 1st party power...

They are only buying a studio if they are sure that it is fitting into their profile. If they would randomly buy any team that happens to be cheap, they would become something like EA, a faceless publisher corporation with no personality, and no quality standards,  because they would be a bunch of suits behind the actual developers.

Actually they I think they should imiate the number of quality titles that Sony publishs every year. I'm not Nintendo is a bad publisher at all, but that they should use this money to grow their company.

And they've already commisioned numerous studios to make Wii exclusives, why don't they just buy them?

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I had no ideas what R&5 is. I was assuming that nothing has been seen because I had never heard about them.

And Sora is making that "Project Sora" or whatever was announced a few months ago.



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Sony grew big time, but look at where they are, expansion comes with great risks, and apparently it's working out very well for Nintendo as far as business strat goes.



dahuman said:
Sony grew big time, but look at where they are, expansion comes with great risks, and apparently it's working out very well for Nintendo as far as business strat goes.

Financially they're doing great. More money in their pockets than Sony at the moment. But why couldn't they spend 1% of that on a big dev?



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they probably already did, we just don't know their internal affairs, that 10 billion will be pretty constant since the Wii and DS are printing money even as we are typing these( and most likely getting higher.)